The word outsourcing has received a very bad reputation as of late. To most people outsourcing means stripping hardworking North Americans of jobs to move them to some third world country where incredibly cheap labour is used to save some money.
The reality is that most of us are probably outsourcing without realizing it. Most small business can’t afford to have inhouse lawyers, bookkeepers, or IT departments. Nor do they have enough work to warrant hiring one.
So the solution is to hire a law firm, external bookkeepers, and IT consultants. Accountants, in particular, are often serving as the outsourced accounting department for a company.
Well this is the definition of outsourcing, taking work that could be done inhouse and having an outside company take care of it. It’s just makes good business sense.
There is also the harsh reality that it is becoming harder and harder to find people that want to do the mundane or repetitive work that is being outsourced. Most of it is being replaced with technology which means everyone is losing the job. Or the work is moving overseas to places where actually want to do it.
Jeff Borschowa lists the benefits and characteristics of outsourcing in his book, 8 Pillars for Exponential Business Growth:
• Can reduce costs and increase file quality
Outsourcing isn’t the big bad word it used to be and it can actually be seen as recruiting advantage. Potential employees that take a look at your company and see that you are outsourcing the mundane work. Suddenly they really want the job because they don’t want to be doing that work and it means they can spend more time doing the work they want to be doing.
• Scalable resource – adapted to work volume
• Locally based staff focus on high level issues
• Time spent identifying consulting opportunities, not on file preparation
• Highest and best use of time – more focus on client meetings
• Use indepth conversations with clients to expand scope of work
• Paperless office critical to success
• Faster billing and collection for commodity work
It also frees up time for mentorship programs and additional training for your inhouse staff. Thus creating a more efficient, higher educated company.